Bitcoin Rebound: 2% Gain in 24 Hours, Analysts See Bullish Cycle

Bitcoin's price has rebounded above the $85,000 mark, recovering from a recent slump to around $74,000. An on-chain analyst suggests that this correction could be a healthy part of a broader bull cycle rather than a sign of a bear market.

ShayanBTC, an analyst on the CryptoQuant platform, analyzed the current Bitcoin market dynamics using the Realized Cap of Unspent Transaction Output (UTXO) age bands. This metric compares the average purchase price of Bitcoin holders to the duration they have held their assets. The analysis focuses on the 3 – 6 months and 6 – 12 months cohorts, which have shown a steady increase in the percentage of coins held.

According to ShayanBTC, this pattern indicates a "holding trend" where investors in these cohorts are not selling their assets despite the market correction. This trend reduces the circulating supply of Bitcoin, increasing its scarcity. Historically, such supply constraints have been positive catalysts for price rallies, especially when combined with new demand. ShayanBTC suggests that this dynamic could drive Bitcoin's price to new all-time highs.

The analyst also believes that the current on-chain structure reduces the likelihood of a bear market. Instead, the ongoing drawdown appears to be a healthy correction within a broader bullish cycle. This perspective is supported by the recent price movements, with Bitcoin briefly crossing $86,000 in the early hours of Sunday, April 13, and currently standing at around $85,200, reflecting a 2% increase in the past 24 hours and a 2% increase over the past seven days.